Basic terms in Economics

Basic terms in Economics

Terms Meaning
Inflation A general rise in price level of all goods and services within a period of time
Demand Consumer's desire to purchase a good or service backed by ability and willingness to pay.
Price It is a amount of money in which a supplier is willing to offer a product and a buyer is willing to pay.
Economic growth Economic growth is the growth in inflation-adjusted gross domestic product within a period of time.
Money supply The total amount of money in circulation or in existence in a country.
Monetary policy Policy by Central Bank to achieve price stability, interest rate stability, and exchange rate stability through the control of money supply.
Microeconomics The part of economics concerned with single factors and the effects of individual decisions.
Quantity theory of money Theory that advocates that as the money in circulation increases, the price level also increases proportionately, and the value of money falls.

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